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1. Describe negative within-firm externalities as they pertain to cash flow versus accounting income.

2. Year Cash Flows

0 -18872

1 10362

2 9968

3 6091

What is the profitability index for the set of cash flows if the relevant discount rate is 9 percent? (Do not round intermediate calculations and round your final answer to 3 decimal places. (e.g., 32.161))

Financial Management, Finance

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